Interest Expense Deduction Individuals and Businesses
Author: Barbara Weltman
| CPE Credit: |
1 hour for CPAs
1 hour Federal Tax Law Updates for EAs and OTRPs
1 hour Federal Tax Updates for CTEC |
The focus of this course is on tax rules for deducting interest payments. It covers the rules for individuals, including mortgage interest, student loan interest, and investment interest. It also covers business interest expense and the limitation that applies for deducting it.
Per the IRS Education Provider Standards this course must be COMPLETED by 12/31/2028 to receive credits. NOTE: Go to My Professional Profile in your CCH CPELink account settings to ensure your name, and PTIN number; matches your PTIN cardPublication Date: July 2025
Topics Covered
- Residence interest
- Interest Allocation
- Qualified Residence Interest
- Acquisition Indebtedness
- Home Equity Indebtedness
- Deducting Points and Penalties
- Student Loan Interest
- Car Loan Interest
- Other Personal Interest
- Investment Interest
- Passive Activity Interest
- Business Interest
- Business Interest Limitation
- Special Rules for the Interest Expense Limitation for Partnerships and S corporations
- Original Issue Discount
- Debt Forgiveness
- SBA Disaster Loans
- Below Market Loans
- Refunds of Interest
- Nondeductible Interest
- Construction Loans
Learning Objectives
- State debt terminology
- List the categories for interest expense for individuals
- Describe the tracing rules for individuals
- Explain the interest rules for home mortgages
- Explain student loan interest and strategies for handling this interest expense
- Explain the deduction for car loan interest created by OBBB Act
- Describe the treatment of interest on debt used in a passive activity
- Explain the interest expense limitation for businesses
- Identify a scenario in which COD income will be excluded from gross income
- Identify the loan amount used to give the de minimis exception to the imputed interest on below market loans to individuals within a family context
Level
Update
Instructional Method
Self-Study
NASBA Field of Study
Taxes (1 hour)
Program Prerequisites
Basic understanding of Individual and Business Tax
Advance Preparation
None
